Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698941711820.pdf (South Africa)
S P B T M # th BUDGET SPEECH BULLETIN Relief for citizens as Government proposes no VAT or tax increases The South African economy is predicted to grow by a disappointing 0.9% this year, with inflation averaging 4.5%, Finance Minister Tito Mboweni told Members of the National Assembly when he delivered his 2020 Budget Speech, writes Sakhile Mokoena.

Mr Mboweni said achieving change to the electricity economic growth and higher regulatory framework”.
employment levels requires a According Mr Mboweni “new tax plan, and that over the next 18 increases at this time could harm months, the economy should get the economy’s ability to recover”.

a number of jump-starts.


He said To this end, and to stimulate these jump-starts will include, economic activity he announced among other things, “the reform that government had decided agenda led by the President, against increasing value added lower inflation, the interest rate tax (VAT), pay-as-you-earn (PAYE) reduction earlier this year, the or other personal income taxes.

recent gains in platinum group In some instances, taxpayers metals’ prices and the impending will now pay even less tax.
2 Mr Mboweni added, “our income “With growth of 3.5%, sub-Saharan tax system is progressive, and the Africa is forecast to be the second- adjustments reflect this.

Someone fastest growing region in the world.

earning R10 000 a month will pay Against this backdrop we forecast that 10% less in tax.

Someone earning the South African economy will grow R100 000 a month will pay about by 0.9% and inflation will average 1.5% less.

We are also proposing 4.5% in 2020.


Persistent electricity broadening the corporate income tax problems will, however, hold back base,” he said.

growth.

Over the next three years, we expect growth to average just over 1%.

Therefore, a stable supply of electricity will be our number one task,” added Mr Mboweni.
Mr Mboweni presented the budget and also tabled the Division of Revenue Bill, the Appropriation Bill, 2020 budget review, 2020 estimates of national expenditure, as well as tax proposals for the year 2020.
Government to propose law to stop excessive salaries in public entities – Mboweni Mr Tito Mboweni, the Minister of Finance, has told Parliament that the government will propose a law to stop excessive salaries in public entities and accelerate plans to merge and consolidate some of these entities, writes Abel Mputing.

“Cabinet approved the publication of a the result of lowering programme new Public Procurement Bill.

We will baselines and the wage bill by R261 accelerate merging and consolidating billion.
“These are partially offset by public entities.

We will propose a new additions and reallocations of R111 law to stop excessive salaries in these billion.

Of this, more than half, or R60 public entities, and we will also deal billion, is for Eskom and South African decisively with the excessive high cost of Airways.” leasing government buildings,” said Mr Mboweni.
Mr MBoweni said while some of these savings were good for the fiscus, “in He said the total consolidated many cases we are also making difficult government spending is expected to and painful sacrifices”.

grow at an average annual rate of 5.1%, from R1.95 trillion in 2020/21 to R2.14 “We shall undertake spending reviews trillion in 2022/23.

This, he said, was to ensure that we achieve this objective.

mainly due to mounting debt-service The second part is adjustments on costs.
Non-interest spending declines on the wage bill by about R160 billion average over the MTEF (Medium Term over the medium term.

Once we get Expenditure Framework) in real terms.

wage growth, corruption and wasteful “Today we announce a net downward expenditure under control, we will focus adjustment to the main budget non- our attention on hiring in important interest expenditure of R156.1billion areas such as education, police, and over the next three years, relative to the healthcare.
We can hire strategically, and 2019 budget projections.

He said the total reduction was mainly better match skills with opportunities,” Mr Mboweni explained.

He also reiterated his concern about the bloated public sector wage bill, which he said would have to be adjusted by about R160 billion over the medium term.
Mr Mboweni also announced, during his 2020 Budget Speech, that the government was moving forward with reforms to the procurement system, with a focus on value for money and maximising the quality and quantity of services.

BUDGET SPEECH 2020: BULLETIN More spending on health and education Minister of Finance, Tito Mboweni, said the government will be allocating more money on learning and culture and health areas.
Learning and culture currently receives R396 billion followed by health that receives R230 billion, and social development with R310 billion, writes Mava Lukani.

In his State of the Nation Address, Health Patient Registration System, President Cyril Ramaphosa said his and is now implementing this system government has noted the enthusiastic in hospitals.
It is also in that context support from South Africans during the that health is identified as an area for public hearings on the National Health more spending.

Insurance (NHI), and based on that, the government is putting in place President Ramaphosa said: “A mechanisms for its implementation fundamental condition for growth following the conclusion of the and development is a healthy and parliamentary process.
productive population, with access to quality, affordable healthcare.” In preparation for the NHI, he said the In the education sector, Minister government has already registered Mboweni said investment will go to more than 44 million people at more new schools, to replace schools that than 3 000 clinics in the electronic are constructed with inappropriate materials, “and providing them with water, electricity and sanitation”.
He said: “In 2020/21 the maths, science and technology grant will introduce coding and robotics to learners from Grade R to Grade 3 as announced by the President.

Transfers to provinces support schooling for 13 million children and healthcare for 49.1 million South Africans,” he added.

The Department of Higher Education and Training will reallocate existing funds to undertake a feasibility study for the establishment of a new university of science and innovation in Ekurhuleni.
#budgetspeech2020 4 Modernisation of network industries and the restructuring of SOEs Finance Minister Mr Tito Mboweni’s budget speech sounded a sombre note in South Africa’s faltering economy, writes Abel Mputing.

The Minister began by pointing out how the economy has contracted over the past decade.

Nonetheless, despite poor growth, Mr Mboweni said, South Africa remains the most diversified economy on the continent and he presented a strong plan for future growth.
One proposal is the modernisation Continental Free Trade Agreement, of network industries and the which South Africa is a signatory to.

restructuring of state-owned This is linked to an industrial strategy, enterprises (SOEs).

“Government will which will include “an innovation do whatever it takes to ensure a stable fund, which will be capitalised with electricity supply … it is our number R1.2 billion over the next three years, one task,” the Minister said.
“To this an industrial business incentive effect, government has allocated R230 worth R18.5 billion, which will create billion over 10 years to achieve the and retain approximately 56 500 restructuring of the electricity sector.” jobs.

An additional R107 million is reprioritised for the refurbishment of A lasting solution to energy challenges 27 industrial parks in townships and hinges on “determinations to rural economies.
And R6.5 billion is implement the Integrated Resource allocated for small business incentive Plan of 2019”.

This will be finalised programmes of which R2.2 billion will shortly, once the National Energy be transferred to the Small Enterprise Regulator has agreed to the plan.

In Development Agency.” addition, government has announced that municipalities will be allowed To streamline all these strategies, the t to buy energy from independent minister advocated that the cost of suppliers.
doing business in South Africa should be lowered.

To this end, “the BIZPortal As for South African Airways, Mr will provide a streamlined way to Mboweni mentioned that business register a new business with the CIPC, rescue will “lead to a radically SARS, the UIF and the Compensation restructured airline”.

In the budget, Fund in one day.” government has allocated R16.4 billion to settle SAA’s guaranteed debt The agricultural sector will also play and interest.
a critical role in boosting economy and “Government has allocated Government is also committed to open R495.1 million to the Department of up new markets, promote regional Agriculture, Land Reform and Rural integration and contribute to economic Development to improve compliance growth in terms of the African with biosecurity and support exports.” Published by the Parliamentary Communications Services of the Parliament of the Republic of South Africa Tel: (27) 21 403 2911 l Email: info@parliament.gov.za Address: P O Box 15, Cape Town 8000 BUDGET SPEECH 2020: BULLETIN